Amazon grows Q2 sales, incurs loss due to investments
Seattle — Amazon.com increased net sales an impressive 22% during the second quarter of fiscal 2013. But the Internet retailing giant reported a net loss of $7 million due to operating expenses and investments in warehouses, digital content and other areas, compared with net income of $7 million in the year-ago period.
Net sales rose to $15.7 billion, compared with $12.8 billion in the second quarter of the prior year. Amazon.com did not offer a specific reason for the net loss. However, the retailer cited a number of achievements during the quarter, including the expansion of the Amazon AppStore to customers in 200 countries, the launch of an Indian marketplace and expansion of Kindle Fire HD’s availability in China, Canada and India.
For the third quarter of this fiscal year, Amazon.com expects net sales between $15.45 billion and $17.15 billion, or to grow between 12% and 24% compared with third-quarter 2012 results. Jeff Bezos, founder and CEO of Amazon.com, stressed the importance of Kindle devices to Amazon’s success in public commentary.
“We’re so grateful to our customers for their response to Kindle devices and our digital ecosystem,” Bezos said. “This past quarter, our top 10 selling items worldwide were all digital products — Kindles, Kindle Fire HDs, accessories and digital content. The Kindle service keeps getting better. The Kindle Store now offers millions of titles, including more than 350,000 exclusives that you won’t find anywhere else.”